Cost of borrowing for State rises sharply in past week

Central banks expected to hike interest rates further next year than previously thought

In recent weeks, the European Central Bank has pledged further rate hikes.

The cost of borrowing for the State along with other eurozone countries has risen significantly in the past week, reflecting market expectations that central banks will hike interest rates further next year than previously thought.

The implied cost of borrowing for the Government to borrow for 10 years rose by over a quarter point since last Friday, with the yield or interest rate on the Irish 10-year bond trading at 2.93%.